L$ / Land Economic Double-Whammy

Actually, the decline of the L$ is greater than discussed on these forums. Hear me out.

Pretend you are Joe Average

Suppose, on 8/1/04 you bought a nice 2,048m plot of M land at the average price of the time (around 15/m) from a land barron. You used GOM to buy the L$ to pay the barron so 2,048m * L$15 per m = L$30,720. Assuming the conversion at the time where $1.40 USD = L$250, it would have set you back $172 USD.

Today, you discover you have a need to sell. Land prices are currently at L$5/m so you could raise 2,048 * L$5 = L$10,240 - which is only 33% of the L$ you paid for the land. Furthermore, when you go to use GOM to cash out, the current exchange rate is USD$.875 = L$250, which nets you a slim $35.84 USD.

You just lost a cool 80% of your investment in under 3 months. Nice one.

Thanks to the double-whammy decline of land and L$ exchange, anyone who bought around 8/1/04 has lost a cool 80% of their investment.

Just an observation.

Hit the street running - pull yerself up by yer bootstraps!

See the Rainbow in the sky,
follow to end,
get pot-O-gold.


Repeat
Recycle

Let's all make homeless-people avatars and stand around burning barrels drinking cheap wine out of paper bag-wrapped bottles. In fact, if you own property, I strongly suggest you build loading docks, bridges, over-passes, park benches or subway stations to accomodate new living areas for the destitute SL population.

*looks through inventory* Now where did I put that shopping cart...

Maybe people shouldn't be buying Monopoly money in the first place?

You mean, it's not WORTH ANYTHING? *dies*

Sheesh.

LF

Excellent! idea David

Yeah, you should email that to Philip.

I'm going to sell scripted windows for AV's to jump out of. Along with Eggy's katanas in a box, we'll corner the market on taking the losers' last dimes. And be rich.

There's money in the pessimism and panic of those who take this game so seriously. Dozens -- dozens -- of dollars are at stake!

But you don't lose your investment unless you sell the land now. How many people are going to develop a sudden urgent need to sell land? It seems like the people who will lose money because of the drop in land prices will mostly be the people who bought land in order to resell it. They understood the risk in their investment, and indeed profited when land prices rose previously. Joe Average can just keep enjoying himself on his land and wait for a better time to sell.

Brilliant! Love it!

Cadroe you rock.

why the hades does everyone assume newbies are running to buy L$ so they can play? i'm a couple months old and i never bought any L$. and i have bought about 1500 square meters of land from the mythical land barons. and i don't have any income outside of stipends. figure that one out all y'all master economists.

So what?

This is precisely why I thought the folks selling 2000m^2 for L$15/m^2 were extortionists and people buying land for those prices were fools and victims. It's not so much an 80% investment loss as it is a stupidity tax, and the land barons laughed the whole way to the bank. If I were this person, boy would I resent the person who sold me land for L$15/m^2.

*I* paid L$1/m^2 for nearly all of my land and think you'd be nuts to pay more.

Just an observation.

You spent some RL cash to support your gaming hobby. That's what I think. If you couldn't afford it, you shouldn't have done it. I've spent a whole lot more on RL hobbies before. Ironically, SL probably saves me money, cause I spend less time going out.

We're not talking food, clothing, and shelter here people.

Surreal

Jacqueline;

You make a good point I just paid out 322.00 US for a nice chunk of land in Ross you can believe that I worked out the worth of that land before I did. SL is my hobby and that plot of land was a xmas gift to myself with that said I agree if you cant afford a purchase, dont buy it. I also think its safe to say no one wants to lose money over a video game either. I enjoyed your post and I think its revelent

Thanks;

Cat